The 230.35 MW Jagdulla Hydropower Project, currently under construction in Dolpa district, is emerging as one of Nepal's most significant government-backed energy projects. Beyond generating electricity, the project is expected to accelerate infrastructure development, improve regional connectivity, boost tourism, and strengthen the economy of Karnali Province.

Developed under the Ministry of Energy, Water Resources and Irrigation's People's Hydropower Program, the project combines government ownership, local participation, and domestic financing, making it a unique model for large-scale hydropower development in Nepal.

According to Jagdulla Hydropower Company CEO Sanjay Sapkota, the company is developing two semi-reservoir projects in Jagdulla and Mudkechula Rural Municipalities. The main 106 MW Jagdulla Hydropower Project and the 124.35 MW Jagdulla-A Project together will generate 230.35 MW of electricity.

The project has already contributed significantly to Dolpa's infrastructure. The company has constructed a 100-meter concrete bridge over the Bheri River, opened access roads through difficult terrain, and installed 10 Bailey bridges, dramatically improving transportation and reducing travel time. What once took more than three days from Nepalgunj to Dolpa can now be completed within a single day, while overnight bus services between Dunai and Kathmandu have also become possible.

Improved road connectivity is also expected to unlock Karnali's tourism potential by providing easier access to destinations such as Shey Phoksundo Lake, Rara Lake, Jagdulla Lake, Upper Dolpa, Jumla, and Mugu.

The economic benefits are equally substantial. After commissioning, the project is expected to generate approximately Rs 19.5 crore annually for the federal government, while both the Karnali Provincial Government and local governments will each receive around Rs 9.5 crore in annual royalties, strengthening regional development.

Construction of the 106 MW project officially began after signing the EPC contract in August 2025 (Shrawan 2082). Meanwhile, engineering studies for the 124.35 MW Jagdulla-A Project have been completed, with environmental approval, land acquisition, power purchase agreement (PPA), financing, and licensing processes nearing completion.

The project is also notable for its ownership structure. Government agencies, Karnali Province, and local governments will jointly hold 51% of the shares, while the public will own 49%. In addition, 10% of shares are reserved for local residents, and 3% for landowners affected by the transmission line right-of-way, making it one of Nepal's most inclusive hydropower investment models.

The project's financing is entirely domestic, with approximately Rs 16.66 billion being invested through leading Nepali financial institutions, including Nabil Bank, Employees Provident Fund, HIDCL, Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.